In a Natural Monopoly

question 6

Multiple Choice

In a natural monopoly,

• A)society would be better off if antitrust laws were used to create many different firms in the market.
• B)the marginal cost curve is positively sloped.
• C)if the government requires marginal cost pricing, it will likely have to subsidize the firm.
• D)the marginal revenue curve is horizontal.

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Definitions:

Modeling

A method used in psychology to learn through the observation and imitation of others.

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A mental health condition characterized by an intense fear of social situations due to feelings of embarrassment, self-consciousness, or concern about being judged by others.

Specific Phobias

A type of anxiety disorder characterized by an excessive and irrational fear of specific objects, situations, or creatures.

Panic Disorder

A type of anxiety disorder characterized by sudden episodes of intense fear that trigger severe physical reactions without any real danger or apparent cause.